SAN DIEGO, Sept. 10, 2024 (GLOBE NEWSWIRE) -- American Assets Trust, Inc. (NYSE: AAT) (the “company”) today announced that its operating partnership, American Assets Trust, L.P. (the “operating partnership”), has priced a public offering of $525 million aggregate principal amount of 6.150% senior notes due 2034 (the “Notes”). The Notes were priced at 99.671% of the principal amount and will mature on October 1, 2034. The offering is expected to settle on September 17, 2024, subject to the satisfaction of cu ...

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Core Viewpoint - The article emphasizes the potential of high-quality office REITs, particularly Cousins Properties (CUZ) and American Assets Trust (AAT), as interest rates are expected to decline, which may lead to increased leasing activity and growth in the sector [2][3]. Group 1: Office REITs Performance - Cousins Properties and American Assets Trust have seen stock price increases of approximately 16% and 15% respectively since July 11th, outperforming peers Douglas Emmett, Inc. and SL Green Realty Corp. [5] - The performance of CUZ and AAT is attributed to their strategic property locations in the growing Sun Belt region and affluent areas in San Diego, California [5][8]. Group 2: Market Trends and Leasing Activity - The office sector has experienced a pickup in leasing activity over the last three quarters, which is expected to continue as interest rates decline [3]. - The article notes that the population decline in states like New York, where SL Green Realty Corp. operates, contrasts with the growth in areas where CUZ and AAT have properties [5][7]. Group 3: Financial Metrics and Outlook - Cousins Properties has a forward price-to-FFO ratio of 10.53x, which is below the sector median of 13.88x, indicating potential for upside [9]. - The occupancy rate for CUZ increased from 87.6% to 88.5% from the beginning of the year to the end of Q2, reflecting positive demand trends [9]. - American Assets Trust has a forward price-to-FFO ratio of 10.61x and a solid occupancy rate of 86.6%, which has improved from 86.4% at the beginning of the year [11][13]. Group 4: Growth Potential - Cousins Properties is projected to have a 21.4% upside over the next two years if it returns to its normal multiple, supported by strong fundamentals and property locations [17]. - American Assets Trust offers a more significant upside of 41.44% if it returns to its historical multiple, with potential growth driven by its property locations and the anticipated return of employees to offices [18].

Core Viewpoint - American Assets Trust (AAT) is positioned as a high-quality REIT that offers attractive income opportunities despite challenges in the office sector, with a focus on its strong financial performance and prime property locations [2][4][15]. Financial Performance - AAT reported Q2 earnings with FFO of $0.60, exceeding estimates by $0.06, and revenue of $110.89 million, surpassing estimates by nearly $2 million [5]. - Year-over-year FFO increased slightly by $0.01, while revenue rose by approximately $1 million from $109.72 million [5]. - The company raised its full-year guidance by nearly 10%, now expected to be in the range of $2.48 - $2.54, indicating a solid growth rate of 4.6% from 2023 [11]. Occupancy and Leasing Activity - AAT's office portfolio was 86.6% leased at the end of the quarter, showing a 20 basis points increase from the previous quarter [8]. - The REIT executed 18 leases totaling 96,000 square feet in Q2, with more than half of the new leasing activity occurring for the first time in five years [8][10]. Property Locations - AAT's properties are primarily located in affluent areas such as San Diego, San Francisco, Honolulu, and others, which are considered Class A properties [6]. - The strategic locations contribute to the REIT's resilience and potential for future growth as businesses may require more office space [10][14]. Dividend and Balance Sheet - AAT is expected to provide a dividend of $1.34 for 2024, translating to a forward yield of 5.2%, supported by growing FFO [11]. - The REIT maintains a manageable debt profile with a net debt to EBITDA ratio of 6.4x, targeting a range of 5.5x or below [13]. Valuation - AAT's current trading price is $26 per share, with a forward P/FFO ratio of 10.36x, below the sector median of 13.96x, suggesting potential undervaluation [14]. - The stock was previously trading near $50 before the pandemic, indicating significant upside potential as occupancy rates improve [14].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to AMERICAN ASSETS TRUST, INC. (Exact Name of Registrant as Specified in its Charter) Commission file number: 001-35030 AMERICAN ASSETS TRUST, L.P. (Exa ...

Financial Data and Key Metrics Changes - In Q2 2024, the company reported FFO of $0.60 per share, a decrease of approximately $0.11 compared to Q1 2024, primarily due to a one-time $10 million litigation settlement in Q1 2024 [16][17] - The company increased its 2024 FFO per share guidance range to $2.48 to $2.54, representing a 9.6% increase from the previous guidance [20][23] Business Line Data and Key Metrics Changes - The same-store cash NOI for all sectors combined grew by 2.1% year-over-year in Q2 2024 [18] - The office portfolio's NOI was flat in Q2 2024, primarily due to contractual rent abatements [18] - The retail portfolio's NOI increased by 3.2% in Q2 2024, driven by higher base rents [18] - The multifamily portfolio's NOI saw a positive increase of 9.5% in Q2 2024, mainly due to higher-than-expected revenue [18] Market Data and Key Metrics Changes - Office utilization rates in San Diego and San Francisco remained stable between 70% and 80%, while Bellevue and Portland were at 60% to 75% [10] - The retail sector is currently about 95% leased, with strong foot traffic supporting demand [12] - The multifamily portfolio in San Diego ended Q2 with an occupancy rate of 89% and a leased percentage of 95% [13] Company Strategy and Development Direction - The company is focused on maintaining a robust balance sheet and enhancing its properties to drive long-term growth [3][9] - The transition of leadership to Adam Wyll as CEO in January 2025 is expected to be seamless, with a continued focus on the same strategic direction [5][8] - The company is not currently looking for acquisitions but is investing in improving existing properties [60][63] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's performance despite pessimistic market sentiment surrounding commercial real estate [3] - The company anticipates that office utilization rates may increase with the implementation of return-to-office mandates [10] - Management believes that the quality and location of their properties are key differentiators in maintaining higher utilization rates [10] Other Important Information - The company announced a quarterly dividend of $0.335 per share for Q3 2024, reflecting strong financial performance [7] - The company released its 2023 sustainability report, highlighting its initiatives in environmental sustainability and corporate governance [15] Q&A Session Summary Question: Any G&A impact expected from the announcement in this year's guide? - Management does not anticipate any G&A impact this year, with changes effective from January next year [33] Question: Details on the lease termination fee and tenant situation? - The tenant was a life science company facing FDA approval issues, leading to a mutually acceptable termination deal [34][35] Question: Prospects for new leasing in the office segment? - New leasing has outpaced renewals for the first time in years, with increased activity and interest in the market [37][39] Question: Thoughts on balance sheet and upcoming debt maturities? - The company is monitoring the market for the right time to refinance upcoming maturities, with a focus on maintaining a strong balance sheet [44][45] Question: Known move-outs in the office segment? - No known move-outs for 2024, but there are plans for backfilling space from a tenant vacating in 2025 [46][48] Question: Progress on leasing at One Beach and La Jolla? - Leasing activity at La Jolla Commons III is strong, while One Beach is facing challenges due to the San Francisco market [50][52]

American Assets Trust (AAT) came out with quarterly funds from operations (FFO) of $0.60 per share, beating the Zacks Consensus Estimate of $0.53 per share. This compares to FFO of $0.59 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an FFO surprise of 13.21%. A quarter ago, it was expected that this real estate investment trust would post FFO of $0.67 per share when it actually produced FFO of $0.71, delivering a surprise of 5.97%.Over the last fou ...

SECOND QUARTER 2024 Supplemental Information Investor and Media Contact American Assets Trust, Inc. Robert F. Barton Executive Vice President and Chief Financial Officer 858-350-2607 | --- | --- | --- | --- | --- | --- | |---------------|------------|------------|-------------|------------|--------| | | Office | Retail | Multifamily | Mixed-Use | | | Market | SquareFeet | SquareFeet | Units | SquareFeet | Suites | | San Diego | 1,590,552 | 1,322,200 | 1,453(1) | — | — | | Bellevue | 1,032,683 | — | — | — | ...

Financial Performance - Net income available to common stockholders for the three and six months ended June 30, 2024, was $11.9 million and $31.2 million, respectively, translating to $0.20 and $0.52 per diluted share [1][3] - Funds from Operations (FFO) per diluted share increased by 2% and 6% year-over-year for the three and six months ended June 30, 2024, reaching $0.60 and $1.32, respectively [1][3] - The company increased its 2024 FFO per diluted share guidance to a range of $2.48 to $2.54, marking a 9.6% increase over prior guidance [1][19] Leasing Activity - The company signed 37 leases for approximately 164,700 square feet of office and retail space during the second quarter of 2024, with renewals accounting for 83% of comparable office leases and 94% of comparable retail leases [5][6] - The average cash-basis contractual rent increase for leased office space was 5% and for retail space was 6% during the second quarter [10] Portfolio Occupancy - As of June 30, 2024, the total portfolio occupancy rates were 86.6% for office, 94.5% for retail, and 90.0% for multifamily properties [6] - The same-store cash Net Operating Income (NOI) increased by 2.1% and 1.8% year-over-year for the three and six months ended June 30, 2024, respectively [12][14] Balance Sheet and Liquidity - As of June 30, 2024, the company had gross real estate assets of $3.8 billion and liquidity of $514.9 million, which includes $114.9 million in cash and cash equivalents [17] - The company had only 1 out of 31 assets encumbered by a mortgage [17] CEO Succession - Ernest Rady will transition to Executive Chairman, and Adam Wyll will become the Chief Executive Officer effective January 1, 2025 [21][22]

SAN DIEGO, July 09, 2024 (GLOBE NEWSWIRE) -- American Assets Trust, Inc. (NYSE:AAT) (the "Company") will announce its second quarter 2024 earnings in a press release to be issued after the market closes on Tuesday, July 30, 2024. Senior management will hold a conference call for its second quarter 2024 earnings on Wednesday, July 31, 2024, at 8:00 a.m. Pacific Time. To access the conference call, please dial 1 (833) 816-1162 and ask to join the American Assets Trust, Inc. Conference Call. A live on-demand a ...